To print 2.5 Billion Naira notes, the Central Bank of Nigeria Spends N58.6 Billion.
NaijaNews reports that in 2020, the Central Bank of Nigeria spent N58.618 billion to print 2.518 billion Naira notes worth N1.063 trillion.
This is stated in the bank’s 2020 Currency Report, which is available on the bank’s website.
It showed a decrease in the bank’s expenditure on currency printing, which was N75. 523 billion in 2019 compared to N64. 040 billion in 2018.
The current CBN management, led by Mr. Godwin Emefiele, has been driving the cashless policy in order to reduce the cost of printing banknotes and managing cash in the country. In accordance with the policy, the new e-Naira was also launched.
According to the report, “The total cost incurred on printing of banknotes in 2020 amounted to N58,618.50 million, compared with N75,523.50 million in 2019, indicating a decrease of ₦16,905.00 million or 28.84 percent.”
CBN indicated in the report that the notes were printed in-country by the Nigerian Security Printing and Minting Plc (NSPM Plc).
The report indicated that CBN, “approved an indent of 2,518.68 million pieces of banknotes of various denominations in 2020 to satisfy the currency needs of the economy, compared with 3,830.94 million in the preceding year.
“The NSPM Plc was awarded the contract for the production of the entire indent. At end-December 2020, NSPM Plc had delivered 100 percent of the approved indent.”
It put the total stock of currency (issuable & non-issuable) in the vaults of the bank at the end of December 2020 at 2.747 billion pieces, compared with 2.641 billion pieces in 2019, indicating an increase of 105.73 million pieces or 4.00 percent.
“At end-December, 2020, the total issuable notes (newly printed notes and Counted Audited Clean notes) was 592.94 million pieces, compared with 726.43 million pieces in 2019, representing a decrease of 133.49 million pieces or 18.38 percent,” the report showed.
The report also indicated that a total of $1.830 billion was procured over the course of 2020.
According to the report, “This value represents a decrease of USD2,120.00 million or 53.67 percent relative to the USD3,950.00 million procured in 2019.
“This was used to fund Bureaux De Change (BDC) operations, payment of estacode and Personal Travel Allowances (PTA) to Ministries, Departments, and Agencies (MDAs).”
CBN said that the receipt and authentication of foreign currency deposits by Deposit Money Banks (DMBs) reduced significantly due to the downturn in global trade in 2020.
Currency in circulation
The report indicated, however, that Currency-in-Circulation (CIC) increased by 19.06 percent from N2.441 trillion at the end of December 2019 to N2 .907 trillion at end-December 2020.
“The growth in CIC reflected the continued dominance of cash in the economy. Analysis of the CIC shows that a greater proportion was in higher denomination banknotes (N100, N200, N500, and N1000).
“The higher denomination banknotes together accounted for 63.47 percent and 98.08 percent of the total CIC, in terms of volume and value, respectively. The volume of lower denomination banknotes (N5, N10, N20, N50), accounted for 28.43 percent of the total CIC and 1.92 percent, in terms of value as at end-December 2020.”
In 2020, a total of 173,585 boxes of banknotes valued at N980. 758 billion was processed, compared with 260,651 boxes of banknotes valued at N1. 533 trillion in 2019.
This represents a decrease of 33.40 percent in the number of boxes or N552. 971 billion in value of processed banknotes.
Counterfeit Notes decrease
On counterfeit notes, the report showed that a total of 67,265 pieces of counterfeit notes with a nominal value of N56.83 million was confiscated in 2020, indicating a 20.80 percent decrease in volume and 12.18 percent decrease in value, compared with 84,934 pieces valued at N64.71 million in 2019.
It said, “The Global standard for the number of counterfeit per million is 100. The ratio of counterfeit notes to the volume of banknotes in circulation was 13 pieces per million in 2020, compared to 20 pieces per million banknotes in 2019.
The N1000 and N500 denominations constituted the most counterfeited, accounting for 69.06 percent and 30.79 percent, of the total counterfeit notes in 2020, respectively.